According to the CEO's of some of the biggest LED manufacturing companies in China, the LED industry must be restructured and that moment is imminent. Globally, the demand for LED products  is increasing step by step and the industry is expected to really take off in 2014. 

The relatively high cost/performance ratio in LED lighting is now acceptable from the market point of view and things are moving fast in the right direction. An increasingly number of countries started to phase out the "old school" incandescent bulbs, for example they are totally banned in the European Union. 

The integration of LED lighting in both households and businesses is growing rapidly world wide. Yet, the healthy development of the LED manufacturing industry in China is somehow restricted by the lack of regulations, price competition  and the absence of a manufacturing standard in the production of LED bulbs. 

The LED manufacturing industry obviously needs restructuring and government regulations to assure the products uniformity and universal standards of quality are  required. For the financial development of China, carbon emission reductions and achieving energy efficiency is crucial.  In order to protect the environment and to realize energy efficiency, China must be able to manufacture applications and products that are cost effective and  energy efficient. 

Here, LED lighting comes into play, being an environmentally friendly product (unlike fluorescent bulbs that contain pollutants like Mercury)  and highly efficient in terms of energy consumption. The Chinese government should focus on encouraging its top LED manufacturers via comprehensive regulatory action; for example, providing the adequate legislation regulating intellectual property rights, by establishing product standards and making the LED manufacturing industry environmentally friendly. 

Another thing that can be done by the Chinese government is to advertise the LED industry by promoting its obvious benefits, helping it to become a global leader, both in terms of size and technology wise. All these regulations for the domestic manufacturers can be provided under the free market competition conditions and they will lead to a sustainable development for the Chinese LED industry in the future. 

Image Source: http://www.wantchinatimes.com/newsphoto/2011-11-15/450/C410X0564H_2008%E8%B3%87%E6%96%99%E7%85%A7%E7%89%87_N50F_N71_copy1.JPG